ISSI is a technology leader that designs, develops, and markets high performance integrated circuits for the following key markets: (i) automotive, (ii) communications, (iii) digital consumer, and (iv) industrial/medical/military. Our primary products are high speed and low power SRAM and low and medium density DRAM. With the acquisition of Si En, we also design and market high performance analog and mixed-signal integrated circuits. We target high-growth markets with our cost-effective, high-quality semiconductor products and seek to build long-term relationships with our customers. We have been a committed long-term supplier of memory products, including lower density and smaller volume products, even through periods of tight manufacturing capacity.

Our outsourced manufacturing model is based upon a history of joint technology development relationships with key Asian and domestic foundries. We also make strategic equity purchases in selected foundries. We have expanded our presence in the important Asian market by adding design groups in China, Korea and Taiwan, where we now employ over 80 design, product, and test engineers. These design groups complement our core engineering and product management teams located at our San Jose, California headquarters.

In recent years, the need for sophisticated semiconductor memory has expanded beyond the personal computer market and into the automotive, communications, digital consumer, industrial, medical and military markets. Increased memory content is required in these products in order to help process large amounts of data.

The increasing demand for high-performance memory devices across a variety of end markets provides a substantial opportunity for a focused supplier of high-performance memory integrated circuits, such as ISSI. Key elements of our strategy to capitalize on this opportunity are:

Build Collaborative Relationships with Leading Edge Foundries. We work in a highly collaborative mode with our principal wafer foundries to develop leading edge process technology and to gain more secure access to wafer capacity during industry up cycles.

Commit to Being a Long-Term Supplier of our Products. Our fabless sourcing model allows us to accommodate smaller volume product runs and provide a source of long-term supply for our customers' needs.

Continue to Develop and Offer High Performance Products. We work with our customers to identify the memory requirements of their next generation products and then focus our development efforts accordingly.

Expand our Asian-Based Development Teams Close to our Customers. We intend to continue to capitalize on our extensive experience in Asia by expanding our engineering development teams in Taiwan, Korea and China.

Further Penetrate Industry Leading Customers. We leverage our expertise in producing high-quality memory products to penetrate our target markets through industry leading accounts that we believe define the direction of future memory requirements.

Develop Selected Non-Memory Products for Key Markets. In order to increase product diversification and to offer products that are synergistic with our SRAM and DRAM expertise, we are developing selected non-memory products for use in our key markets.